Professionalism project Essay Example | Topics and Well Written Essays - 750 words

Professionalism project - Essay ExampleSheng reckons that individuals, transmission linees, non-profit- make organizations, and government can use managerial score to prise their fear performance. More so, Sheng notes that managerial accounting follows no accounting standards or general principles and so companies can choose specific tools and techniques for managing their businesses (Caplan 1). Sheng observed that business could implement managerial accounting by themselves or hire professional accountants with knowledge on charge accounting to carry out this role. In Shengs case, her relative uses certain managerial accounting techniques to evaluate the business performance of the food store.Most importantly, Sheng says that various management accounting techniques help their family in making important management decisions. She named the techniques he relative uses that included budgets, variance analysis, target costing, activity based costing, honourable in - time system, and break-even analysis. Sheng states that budgets are important in the food store as they create a financial road map for the management to follow while planning on how to spend business capital in the future. Sheng notes that the process of making the food stores budget involves the analysis of noncurrent production figures, labor cost, and raw material costs used to do specific things in the business. She hence says that they use another technique called variance analysis to ensure that the management follows the budget and provides information on how to handle potential variances. Sheng states that variance analysis involves the calculation of variances on the assumed labor costs, and level of gross revenue in the food store. As such, variance analysis helps the management of the food store to choose which subdivision in the food store needs changes. On the other hand, Sheng state that her relative uses Just-in-time systems to ensure that return of products to the food store takes